Lots of internal developments in China that may have an impact on Super Photonics X. One of those developments is the stress on the overall Chinese economy caused by the implosion of the domestic real estate market in China. Millions of Chinese homeowners and real estate investors are on the short end of bank and other financial institutions failing to make time required payments on their real estate loans. Domestic Real Estate market is a huge factor in the overall Chinese economy and the ripple effect is percolating throughout the Chinese economy within and without the Real Estate sector.

“Property weakness is perhaps the most challenging growth headwind amid China’s ongoing post-reopening recovery, and thus the momentum and sentiment in the property sector have significant implications for growth and policies,” says Goldman Sachs China economist Wang Lisheng in a July report.

Zhou Xin opines "The moment of reckoning looms large for China's property market as crisis deepens"

There is no question that factors influencing the overall Chinese domestic economy will be important to any market sector within China related to sales and growth of that sector.

Photonics will not be an exception.

China real estate crash is worse than official data | Fortune

 The moment of reckoning looms large for China’s property market as crisis deepens | South China Morning Post (scmp.com) 

In a Reuters article today, 17 August 2023, the statement is made:  "Since the sector's debt crisis unfolded in mid-2021, companies accounting for 40% of Chinese home sales have defaulted, most of them private property developers."

"China's property sector accounts for more than half of global new home sales and home building, and it is the largest asset class in the world, with an estimated market value of around $62 trillion."

Country Garden: How bad is China's property crisis? | Reuters

Bankruptcy would have a "Knock On Effect" claims an article by Nik Martin today, 17 August 2023, in Made for Minds entitled "China:  Next Real Estate Giant On the Ropes".

China: Next real estate giant on the ropes – DW – 08/17/2023

As China's real estate sector contributes as much as 30% of the country's gross domestic product (GDP), any collapse of Country Garden would have a damaging impact on the entire financial system.

Country Garden: How bad is China's property crisis? | Reuters

China's Economic Growth Is Collapsing Amid Deflation, Debt, Housing Woes (businessinsider.com)

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